The Bureau of Industry and Security will add 26 companies and people to the Entity List after the agency said they violated U.S. export controls -- including by supplying sensitive items to China, Iran, Pakistan or Russia -- or failed to comply with U.S. end-use checks.
Banks should consider investing in additional processes and technology to adhere to the Bureau of Industry and Security’s new export compliance guidance for financial institutions, Sheppard Mullin said in a blog post last week.
The Bureau of Industry and Security on Oct. 23 will add 26 companies and people to the Entity List for trying to buy controlled U.S. items for China’s military, evade sanctions against Russia, supply sensitive goods to Iran or Pakistan, or for evading U.S. end-use checks, the agency said in a final rule released Oct. 21. BIS will also remove two entities from the list and update the address information for another entity.
A set of new rules released last week by the Commerce and State departments will reduce licensing requirements for exports of certain space-related items to a range of U.S. trading partners and propose to transfer export control jurisdiction over other space-related defense items from the State Department to the Commerce Department, lowering trade barriers faced by the commercial space industry for years.
The U.S. will soon reduce licensing requirements for exports of certain space-related items to a range of countries and may transfer export control jurisdiction over other space-related defense items from the State Department to the Commerce Department, according to four rules released by the agencies Oct. 17. The rulemakings are designed to “modernize” U.S. export controls on space technologies, a senior Commerce official told reporters, including by easing restrictions on exports of less sensitive space technologies, certain spacecraft-related items and more.
The Bureau of Industry and Security this week added eight companies to its Unverified List after it was unable to verify the “legitimacy and reliability” of the entities through end-use checks, including their ability to responsibly receive controlled U.S. exports. It also removed two companies from the list after BIS said it was able to successfully conduct end-use checks.
New export compliance guidance issued by the Bureau of Industry and Security outlines the agency’s due diligence expectations for financial institutions and warns that companies that “self-blind” to red flags could face penalties.
The State Department’s Directorate of Defense Trade Controls recently updated its list of commodity jurisdiction (CJ) determinations, which DDTC issues after receiving requests from industry to determine whether a commodity or service is covered by the U.S. Munitions List. The table includes several new CJ determinations issued in September, including certain subassemblies for tactical unmanned aerial vehicles, which DDTC classified as USML Category VIII(f); an item that allows helicopters to carry sling loads and serves as “a conduit for electric actuation of remote hooks and other electrically operated equipment,” which it classified under the Export Administration Regulations as EAR99; and a digital fuel gauge that it classified as USML Category VIII(h)(1).
The Bureau of Industry and Security on Oct. 4 again renewed the temporary denial order for Russian airline Ural Airlines, saying it has continued to illegally operate aircraft on flights within Russia and to and from Tajikistan and Kyrgyzstan. The order, first issued in October 2022 (see 2210170009) and renewed twice (see 2310100017), bars the airline from participating in transactions with items subject to the Export Administration Regulations.
The U.S. is increasingly expecting companies to monitor government guidance as well as export violations committed by others, and to use those cases as “lessons learned” to improve their own compliance programs, lawyers said this week.